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Thomas P. Marinis, Jr., J. Barclay Collins III,
Sarah A. Duckers, and Charles L. Almond, for petitioners.
Paul L. Dixon and Barbara S. Trethewy, for respondent.
MEMORANDUM FINDINGS OF FACT AND OPINION
LARO, Judge: The docketed cases are before the Court
consolidated for purposes of trial, briefing, and opinion.
California Hotel & Casino (CHC) petitioned the Court to
redetermine respondent's determination of deficiencies of
$81,761, $14,428, and $42,124 in its consolidated group's 1982,
1984, and 1987 Federal income tax, respectively. Boyd Gaming
Corp. (Boyd) petitioned the Court to redetermine respondent's
determination of a $152,346 deficiency in its consolidated
group's 1988 Federal income tax.
Following concessions by the parties, we must decide whether
petitioners' deductions for food and beverages provided to their
employees without charge on petitioners' business premises are
limited by section 274(n)(1). In Boyd Gaming Corp. v.
Commissioner, 106 T.C. 343, 344, 349 (1996), we held in summary
adjudication that section 274(n)(1) does not limit petitioners'
deductions if the food and beverages are a de minimis fringe
benefit under section 274(n)(2), which, in turn, requires that
petitioners provide the food and beverages to each of
substantially all of their employees for the "convenience of the
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